BAKU, Azerbaijan, October 11. U.S. natural gas prices experienced a notable increase in September, primarily driven by a slight drop in production from August levels, says the U.S. Energy Information Administration (EIA), Trend reports.
The U.S. benchmark Henry Hub price averaged $2.28 per million British thermal units (MMBtu) in September, reflecting a 15% rise from August’s average of $1.98/MMBtu.
The production decline was significantly influenced by an 11% reduction in Gulf of Mexico (GOM) natural gas output. Approximately 53% of GOM production capacity was offline following Hurricane Francine, which made landfall on the Louisiana coast on September 11. This setback was compounded by Category 4 Hurricane Helene, which impacted the region just two weeks later, further disrupting energy operations and preventing a return to full production capacity.
Looking ahead, the EIA projects that the Henry Hub price will rise to nearly $2.80/MMBtu in the fourth quarter of 2024 and reach around $3.10/MMBtu in 2025. The anticipated price increases in 2025 are expected to result from a surge in liquefied natural gas (LNG) exports, while domestic consumption and production are expected to remain relatively stable.
The EIA forecasts U.S. natural gas consumption will average 89 billion cubic feet per day (Bcf/d) in 2025, consistent with the 2024 forecast. However, LNG exports are expected to rise by nearly 2 Bcf/d next year, fueled by sustained strong international demand and the expansion of export capacity.